news.bitcoin.com Archives - Page 551 of 552 -
Bitcoin is a fascinating monetary tool that many believe will help fight the central banking system, corrupt economic planning, and help stop a small group of individuals from controlling the world’s money supply. Often times bitcoin is associated with anarcho-capitalism, free markets, and sometimes the Austrian school of economics. Today we will look at a large group of anarcho-capitalists, ‘gold bugs,’ and well-known economists to see how they feel about the bitcoin revolution.
Libertarian Luminaries and Anarcho-Capitalist Personalities Weigh In On Bitcoin Over the Years
Some people believe the decentralized cryptocurrency bitcoin is a tool that Austrian economists, anarcho-capitalists, libertarians, anarchists, and agorists should embrace. However, the many luminaries that have studied the works of Ludwig von Mises, and Murray Rothbard are still unsure about bitcoin. Some have embraced the cryptocurrency right away, while other individuals who pride themselves as ‘gold bugs’ changed their tune after initially dismissing bitcoin. Either way, bitcoin is very much a part of the anarcho/libertarian based ideologies and has been for quite some time.
The writer and anarcho-capitalist, Doug Casey, is well known for his economic beliefs and essays about politics and markets. A few years ago Casey did not like bitcoin and dismissed the cryptocurrency when asked if he supported the new technology. However, these days Casey has a different perspective as the writer believes bitcoin is money, but he’s not confident it will last.
“As far as the cryptocurrencies are concerned, my original objection to Bitcoin was that it’s not backed by anything — So, it’s really a fiat currency — It’s very much like the US dollar, the Zambian Kwacha, the Argentine peso, or any of the other 150-plus currencies in today’s world — It’s a floating abstraction,” Casey explains in a recent interview.
But I missed something when I said, back then, that it had no value. It’s a fiat currency, but it has much more value than any other.
Dr. Ron Paul
Ron Paul is a former U.S. politician and a very popular Libertarian. Many believe Paul had sparked the interest of libertarianism in the minds of thousands of people when he ran for the U.S. presidency three times. Paul is also an author who wrote the famous book “End the Fed” among other classic works, as well as a student of the Austrian school of economics. The former politician has always been a fan of gold and precious metals, and at first, Paul was bit hesitant about bitcoin. However, Paul has changed his mind over the years as he now does television ads for a cryptocurrency IRA. During the cryptocurrency IRA commercial Paul states;
As a firm believer in currency competition, I’m excited to see the options what bitcoin opens up.
Robert Murphy is an anarcho-capitalist and popular writer and scholar at the Mises Institute website. Murphy likes bitcoin, and has co-authored a book called “Understanding Bitcoin: The Liberty Lovers Guide to the Mechanics and Economics of Cryptocurrencies.” In Murphy’s guide, he explains that bitcoin has become a medium of exchange and the often touted ‘Mises Regression Theorem’ has no relevance.
“We are not predicting that bitcoin will eventually become a genuine money, rather we are arguing that at this point, the regression theorem of Ludwig von Mises has no bearing on the question at all,” explains Robert Murphy and Silas Barta’s book.
Whether bitcoin becomes a money, or forever remains a medium of exchange, is a purely empirical question to which the regression theorem has no relevance.
David Kramer, another libertarian-leaning writer for the anti-state, anti-war, and pro-market website Lewrockwell.com, does not like bitcoin. Back in 2011, Kramer wrote an article called “Bitcoin: Just Another Bogus Medium of Exchange” and compared the decentralized currency to the now-defunct e-gold system. Kramer argues that bitcoin’s previous value was zero, and because it’s “bits in a computer” it still is zero. Only the free market can determine a fixed monetary source, “not a computer programmer,” explains the author. Kramer’s arguments have been refuted by many well-known bitcoiners like Jon Matonis.
The notorious Peter Schiff is a gold bug and American investor who has hated on bitcoin for quite sometimes. Nearly every time Schiff talks about bitcoin he relates the technology to the likes of collectible Beanie Babies and ‘tulip mania.’ It doesn’t seem like Schiff will ever appreciate bitcoin due to the fact it doesn’t have intrinsic value. News.Bitcoin.com has reported on Schiff’s many arguments against bitcoin over the years and his recent debates with the bitcoin proponent and RT talk show host Max Keiser, and CNBC’s Brian Kelly.
“It’s digital ‘fools gold,’” declares Schiff on CNBC. “You know today’s bitcoins are like beanie babies. The whole principle behind bitcoin was to replicate the properties that made gold uniquely suited to be money and act as an alternative to fiat currencies. But it’s not really viable as a money — I mean it is a potential medium of exchange, but it’s not a store of value.“
Konrad Graf is a well-known writer and economist that has published many articles on bitcoin monetary theory. Graf has written essays such as the “On the Origins of Bitcoin,” the “Bitcoin Decrypted Series,” and more recently “Are Bitcoins Ownable?” Back in November of 2015 Graf spoke with news.Bitcoin.com and told our readers that “bitcoin is among the greatest inventions in history.”
“My ‘On the Origins of Bitcoin’ also focuses on differentiating the pure theory aspect from historical and anthropological approaches,” Graf explains. “It seeks to integrate both Menger’s and Mises’s contributions with some distinctive insights from Nick Szabo (aspects of “Shelling Out: On the Origins of Money”) into a single account that can handle bitcoin, shell beads, silver coins, and anything else, all in a way I argue is compatible with the Misesian regression theorem.”
The German-born American Hans-Hermann Hoppe is a popular anarcho-capitalist and Austrian School economist. Hoppe doesn’t believe bitcoin is money and has never been a fan of the cryptocurrency at least in public. However, the economist does think a radical form of decentralization will end the nation states and wreak havoc on the parasites pushing for democracy. Hoppe explained this position last year stating;
Don’t put your trust in democracy, but neither should you trust in a dictatorship. Rather, put your hope into radical political decentralization, not just in India and China, but everywhere.
Dr. Walter Block
The well known Walter Block is an Austrian School economist and anarcho-capitalist theorist. Block is also a senior fellow of the Ludwig von Mises Institute in Alabama. The economist doesn’t seem to appreciate bitcoin and has stated it goes against Carl Menger’s monetary theory believes it only exists because gold is suppressed.
“I favor money based on real commodities (gold, silver, whatever the market settles upon), and, I gather, bitcoins do not qualify — So, I oppose bitcoins,” explains Block.
I favor 100% backed (by a commodity) currency for reasons that Rothbard and Mises have written about, over and over again.
One particular Austrian economist who dislikes bitcoin is Gary North. In fact, North believes “bitcoin is the second biggest Ponzi scheme in history” in one of his controversial essays. North discusses the primary aspects of what a Ponzi scheme is and how the origin of money works using the Austrian school of economics. North’s anti-bitcoin rhetoric has been refuted several times by other economists but the Lewrockwell.com and Mises Institute author has not been swayed.
“I hereby make a prediction: Bitcoin will go down in history as the most spectacular private Ponzi scheme in history,” details North.
It will dwarf anything dreamed of by Bernard Madoff. (It will never rival Social Security, however.)
The author and economist Jeffrey Tucker is the director for digital development for the Foundation for Economic Education (FEE) and a well-known bitcoin advocate. Tucker has written many articles about the prospects of bitcoin, decentralization and digital entrepreneurship. At one time Tucker was a skeptic but soon become a very passionate believer in the cryptocurrency revolution.
“Distributed networks change so much, perhaps everything,” Tucker details back in 2015.
As capital, it is not owned by any one institution, which is amazing. And yet it puts massive economic power into the hands of the individual.
The Irish born Canadian Stefan Molyneux was once a big proponent of bitcoin but has since quieted down about the subject. The anarcho-capitalist now alt-right libertarian is well known for his Freedomain podcasts, books, and YouTube videos. One video called, “The Truth About Bitcoin” is a very in-depth depiction of how Molyneux believes Bitcoin could be a tool to end the nation states.
“If we have a bitcoin universe, you don’t get to print money for war,” Molyneux once stated.
You don’t get to have money for a prison/industrial complex. You don’t get money for a war on drugs. You have to ask the people.
Is Bitcoin Anti-State, Anti-War, and Pro-Market?
There are many more well known Austrian economists and anarcho-capitalists who have a wide range of different views about bitcoin. We really can’t say what Mises, Menger or Rothbard would say about bitcoin with them not being around to witness the internet and blockchain technology. What we can do is formulate our own opinions by reading their works like the Misesian regression theorem, and other theories of what makes money. There are plenty of Austrian economists like Konrad Graf, Daniel Krawisz, and Robert Murphy who believe in bitcoin. It may take a long time for some of these other personalities to accept bitcoin, and some of them like Peter Schiff may never accept it at all.
What do you think of these economists and libertarian philosophers who are for or against bitcoin? Let us know what you think in the comments below.
Images via Pixabay, the Mises Institute, FEE, Lewrockwell.com, and wiki commons.
The post Love It or Hate It: Anarcho-Capitalist Luminaries Weigh In On Bitcoin appeared first on Bitcoin News.
Initial Coin Offerings (ICOs), the cryptocurrency version of crowdfunding, helped many Chinese blockchain startups raise faster funding this year, but also led to China’s clampdown on ICOs. In today’s series, we will take a glimpse at how Chinese blockchain businesses raise money after crowdfunding platforms were shut down.
Create Project Closed Groups
Measurable Data Token(MDT), a decentralized data exchange ecosystem, will be used to stipulate and reward users sharing their data to enterprises. The MDT team doesn’t use any PR services to reach as many people as possible in the world. Instead, they simply create a Wechat group and send group members an email explaining investment details. To attract investment, they promise 25% bonus to early bird investors and tokens purchased will be unlocked in 30 days when MDT is listed on exchanges. Sound enticing?
As of the time of writing, there are still less than 400 people in the group. An investor told news.Bitcoin.com that:
The project is really slow. They have been raising for over two months. Ever since exchanges were shut down, most investors just want to sell tokens they already have on hand. They don’t have much enthusiasm for new projects.
Initial Exchange Offerings
Mixin is an EOS-based real-time communication tool that can transfer coins using end-to-end encryption, according to its official website, the project has a 1,000,000 XIN token cap. Among which, 500,000 XIN will be reserved for the Mixin team. 400,000 XIN will be listed as an XIN/EOS trading pair on BigONE without price limit from November 25 until December 25. Orders will be executed according to price-time priority as received by the Bigone matching engine. The sale will end as soon as 8,000,000 EOS have been matched. Investors jokingly call this type of crowdfunding ‘Initial Exchange Offerings’ (IEOs) that synchronize token sales, token distribution, and tokens being listed at exchanges.
The rest of 100,000 XIN will be sold to whitelisted users after Dec 25 at the lowest Bigone price. How to be a whitelistes user? Register on the platform with your phone number and you will get an invitation code and a link. Send the link to others and if anyone registers with your invitation code, both you and the invitee will get a fixed share of the whitelist quota. Further invitees of invitee will also credit some shares to the original invitor, up to 7 levels.
This is why invitations with links to register Mixin have been clustering all wechat groups these past two days. Group members complain that this type of marketing reminds them of Ponzi schemes, especially considering that the project hasn’t released any information about the development team and roadmap, not even a whitepaper.
ICOs or IEOs, some projects rule out such efficient approaches to receive whopping financing. Nerthus is a Shenzhen-based blockchain startup that uses the Directed Acyclic Graph technology (DAG) to create a universal blockchain programming platform, it says. BD manager Erica Chen explained to news.Bitcoin.com that they are seeking support from traditional investors. “These investors don’t know much about blockchain. We have to spend a lot of time explaining to them. And they keep asking when the project will be launched and want to monitor our project progress,” notes Erica.”But at least we will not catch the attention of regulators.”
Once bitten, twice shy. Do you think the ICOs-led boom in entrepreneurship will occur again? Leave your comments below!
Images courtesy of Shutterstock, and WeChat.
Need to calculate your bitcoin holdings? Check our tools section.
The post How Chinese Blockchain Projects Raise Funds Despite the ICO Ban appeared first on Bitcoin News.
Bitflyer, the world’s largest cryptocurrency exchange, is muscling in on U.S. territory after securing a highly coveted Bit License. Just three of the licenses have previously been awarded, which entitle a company to operate a bitcoin exchange within New York. The Japanese exchange will now roll its services out to customers in a total of 41 U.S. states.
From Tokyo to New York
In its native Japan, Bitflyer provides trading of bitcoin, bitcoin cash, and ethereum against the yen, with 24-hour BTC volume of around US $ 170 million. This accounts for 96% of all trading activity on the platform. Having secured permission to launch across the majority of the U.S, the Tokyo company will be able to significantly broaden its customer base and to tap into Americans’ growing demand for cryptocurrencies.
Japanese cryptocurrency investors have traded $ 100 billion of assets via Bitflyer this year and the exchange will be hoping it can capture a similar share of the U.S. market. It will face stiff competition though from established exchanges such as Coinbase, Gemini, Bittrex, and Kraken. One exchange it won’t have to compete with is Asian neighbor Bitfinex, which is in the process of cutting ties with the U.S. market. Gemini is making great strides in its quest to grow its customer base; today the New York-based exchange announced that it has opened its services to Oregon residents, taking the number of states covered to 46.
Japan’s Largest Bitcoin Exchange is Flying
Bitflyer, which accounts for 30% of all bitcoin exchange volume, is evidently pleased to have gotten its hands on a Bit License from the New York Department of Financial Services. These are notoriously hard to obtain, and are evidence that Bitflyer has put significant time and effort into its U.S. expansion.
CEO Yuzo Kano said:
Bitflyer is proud to have been granted a Bit License to do business in the state of New York. This is a nod of approval from one of the most influential state financial services regulators in the nation.
At first customers will only be able to purchase bitcoin, though Bitflyer has plans to introduce other cryptocurrencies in due course. As an incentive to lure U.S. customers, the exchange will be offering 0% trading fees until the end of the year. It was in August that Bitflyer first announced its planned foray into the United States. The highly regarded Japanese exchange now has a chance to prove itself Stateside, but will have its work out to catch Coinbase, which dominates the American market and has a major presence in 189 other countries.
Do you think Bitflyer will crack the U.S. market? Let us know in the comments section below.
Images courtesy of Shutterstock, Unsplash, and Bitflyer.
The post Bitflyer Launches Its New Cryptocurrency Exchange for US Customers appeared first on Bitcoin News.
Keeping a smaller currency constantly pegged to a larger national one, to a regional one or even to a global reserve currency, is a difficult task which many central banks around the world have failed to do in the past in times of crisis. When enough speculators attack the currency, or capital outflows are just too great to handle, keeping the peg becomes unsustainable and it cracks. Despite this the people behind one controversial altcoin, Tether, are trying to achieve just that.
Now the entire Tether idea is coming under intense scrutiny by voices in the cryptocurrency community in online forums and social media where people are raising their concerns. The most recent spark for this maelstrom is an apparent unintentional admission by the Tether PR team that the USTD is backed by other cryptocurrencies and not the USD. This means that in case of a crisis analogous to a traditional ‘run on the banks’ Tether might not be able to back up all its USTD with hard fiat cash.
In addition to Tether, the Bitfinex exchange has received much of the flak arising from this issue. It was recently revealed that Bitfinex’s Giancarlo Devasini and Philip Potter established Tether in the British Virgin Islands in 2014. The exchange was already facing harsh scrutiny over its relationship to the altcoin and its failure to adequately answer for a $ 30 million hacking of the Tether Treasury Wallet.
What Can Be the Repercussions?
Usually when a peg is no longer sustained despite previous promises it can have detrimental short-term effects on traders, exporters, importers, brokers or anyone else which relayed on a fixed exchange rate. Such was the case when George Soros “broke” the Bank of England in 1992, when the Swiss National Bank dropped the cap on the franc in 2015 and many other instances along the years.
In the unfortunate case of a Tether unpegging, the first to suffer the consequences will probably be cryptocurrency exchanges that use it as a proxy for fiat trading – unless they are already working on contingency plans unbeknownst to the public that is. In the longer term it could likely lead to financial regulators clamping down harder against cryptocurrency altogether, as many already fear. The bad press that will come out of it can also shake the confidence of bitcoin investors, many of them new to the field as they were attracted to the recent rally which took BTC from $ 1,000 to $ 10,000 this year, leading to a crash.
How do you think Bitfinex will be affected by the latest developments? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
Want to create your own secure cold storage paper wallet? Check our tools section.
The post Bitfinex Faces Further Scrutiny Over Tether Liquidity Concerns appeared first on Bitcoin News.
The price of bitcoin has grown significantly since our last price report when BTC surpassed US$ 9,000 per token. Now the cryptocurrency is setting its sites on the $ 10,000 target just two days later as the price has been hovering around $ 9,850-9,950 over the past six hours. Bitcoin has already touched the $ 10K mark on a few exchanges located in Asia, and very close to that price territory on a multitude of global trading platforms.
The $ 10K Target
$ 10,000 for a single bitcoin is so close; people can taste it. However, according to the weighted global average on exchanges like Bitstamp, GDAX, Bitfinex, and others the price is not quite there just yet. Bitcoin volume is extremely high as the past 24-hours has seen over $ 5.9Bn worth of global bitcoin trades. As usual, Japan is leading the pack, as the country’s currency, the yen, is dominating by 63 percent at press time. Behind the yen is the U.S. dollar, the South Korean won, the Euro, and Tether. The controversial Tether currency, which is allegedly backed by USD has increased its exposure quite a bit. Tether has been the fifth highest traded currency paired with bitcoin for the past two weeks. Today’s top five exchanges include Bithumb, Bitfinex, Hitbtc, GDAX, and Bitflyer.
News.Bitcoin.com also spoke with, Charles Hayter, CEO of the cryptocurrency data and analysis website Cryptocompare, who explains $ 10K per BTC is a seminal moment for bitcoin and cryptocurrencies in general.
“Typically Bitcoin struggles to overtake significant round numbers as we have seen at $ 3,000, $ 5,000 and $ 7,500. $ 10,000 is likely to be the same, however, the CME futures, as well as prospects of ETF’s, will no doubt continue to stimulate demand for Bitcoin,” Hayter tells news.Bitcoin.com.
$ 10,000 represents the closing of the second cycle in Bitcoin which has drawn the interest of institutional investors who have so far been constrained from trading by their remits. This is starting to change as more sophisticated and regulated instruments are made available. This will lead to Bitcoin’s third cycle
Looking at the daily and weekly charts show buyers are commanding markets right now and will likely continue in the short term. Right now, the gap between the two Simple Moving Averages is quite wide with the 100 SMA far above the long-term 200 trend line. The signals indicate the probability for the path to the upside will continue to be greater than a correction for now. However Stochastic and RSI levels have been heading south for quite some time, which shows oversold markets and bullish exhaustion may set in. Order books show some bearish sentiment could drop the price to strong foundations between the $ 9,400-9,600 zones. Further panic selling could bring the price below $ 9K if the Displaced Moving Average breaks the key territory at $ 9,150. A continued bull market could bring the price above the $ 10,000 target this week at any hour at the current vantage point, but at the moment, buyers are struggling to exceed this region.
Cryptocurrency Markets In General
Overall cryptocurrency markets are doing quite well. As we reported the other day the entire economy now commands a $ 300Bn market capitalization. Today $ 10bn more was added to that number, as multiple digital assets are seeing new highs and price spikes. Right now ethereum (ETH) markets are down 0.69 percent at $ 473 per ETH. Bitcoin cash (BCH) is down 5 percent, touching a 24-hour low at $ 1560 per BCH. Ripple (XRP) markets are up a lot, seeing an 11 percent increase as one XRP is averaging around 28 cents. Lastly, the newcomer to the number 5 market cap position, bitcoin gold (BTG), is down 8 percent as one BTG is worth roughly $ 330.
Cryptocurrency enthusiasts are thrilled with the rallies taking place on digital asset markets worldwide. Across social media, as well as forum’s proponents, are sharing price ticker screenshots and pictures of their favorite crypto-centric memes. Bitcoin also traded above $ 10,500 last night on the two Korean exchanges Bithumb and Coinone. Most bitcoiners believe $ 10,000 per BTC across all trading platforms seems inevitable, and many think it is just the beginning for this nascent currency.
Bear Scenario: The price could correct at any moment at bitcoin’s current price point. The bullish run was extremely fast as the currency has spiked over $ 1,800 in the past three days. Right now we could see prices land at $ 9,400-9,600, and even drop below $ 9K, if people have weak hands causing a more significant sell-off.
Bull Scenario: Right now buyers are trying very hard to break the $ 10K barrier, but have been unsuccessful so far across many exchanges. However, bulls are still charging, and by the looks of it $ 10,000 dollar bitcoins are still attainable. Using the Fibonacci retracement tool shows after breaking $ 10K markets, we could easily see $ 10,500 and $ 11,000 prices very quickly. This is unless, of course, sellers move their positions to higher selling levels in time.
Where do you see the price of bitcoin heading from here? What target do you see? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images via Shutterstock, Pixabay, Target, Bitstamp, and Coinmarketcap.com
Need to calculate your bitcoin holdings? Check our tools section
The post Markets Update: Bitcoin Bulls Set Their Sites for the $ 10,000 Target appeared first on Bitcoin News.
This week the Bitcoin ABC development team released its medium-term plans for the Bitcoin Cash (BCH) roadmap. Developers say the proposal represents goals for the next 6-12 months.
Bitcoin ABC and Seven Development Teams Aim to Improve Bitcoin Cash
Two weeks ago news.Bitcoin.com reported on the successful bitcoin cash hard fork, and more recently we covered the BCH developer’s plans to change the currency’s address format. On November 28 the Bitcoin ABC programmers revealed their medium-term future roadmap for the BCH blockchain. The organization is also collaborating with seven other development teams who have a shared vision.
“Bitcoin ABC developers have been collaborating and communicating with developers and representatives from several projects, including Bitcoin Unlimited, Bitprim, Nchain, Bitcrust, ElectrumX, Parity, and Bitcoin XT,” explains the Bitcoin ABC medium-term roadmap.
Although these are independent projects, each with their own development processes and priorities, we share a common vision for advancing bitcoin cash — While we can only speak for ourselves, plans for Bitcoin ABC align with this shared vision.
The BCH Network’s Primary and Secondary Goals
The development team explains the ultimate goal is to keep improving BCH as a currency and network. “It should ‘just work,’” details the roadmap and this includes being more reliable, scalable, and have low fees. Bitcoin cash should be ready for the mainstream masses to adopt as soon as possible the developers emphasize.
In the next 6-12 months Bitcoin ABC also plans to improve secondary goals that aim to enhance the BCH network’s features. Tentative BCH features and future upgrades include increasing the block size limit again towards an adaptive block size. The possibility of removing ordering consensus and implementing canonical transaction ordering. According to the Bitcoin ABC developer ‘Mengerian,’ this could help with adding Gavin Andresen’s Graphene technology. “Additionally, it also paves the way for techniques to enable massive scaling in the future, such as sharding, and parallelized block validation,” Mengerian explains.
The Need to Be Proactive
Further, the team plans to improve the Difficulty Adjustment Algorithm (DAA) even more so and also reactivate certain bitcoin-Opcodes that were deactivated in the past. Moreover, the programmers want to add protocol extension points to facilitate future Opcode upgrades which could lead to developments like Colored Coins. All of the proposed BCH protocol upgrades are dependent on “further discussion, implementation, and testing.” The Bitcoin ABC team is calling on anyone who wants to help improve bitcoin cash for the better.
“For anyone interested in seeing these features (or others) in bitcoin cash, now is the time to step up and work on them — The protocol upgrades will need solid implementation, with lots of time for review and testing,” explains the medium-term Bitcoin ABC roadmap.
We do not want to be in a position where people push for last-minute changes to be included in the protocol upgrade. We need to be proactive.
“Working together, we will make bitcoin cash the best money the world has ever seen,” the developers conclude.
What do you think about the bitcoin cash team and its plans for future upgrades? Let us know what you think in the comments below.
Images via Shutterstock, Twitter, and Bitcoincash.org.
The post Bitcoin ABC Developers Announce Medium-Term Bitcoin Cash Roadmap appeared first on Bitcoin News.
It takes a brave soul to bet it all on bitcoin. Yet six months ago, that’s exactly what one Redditor did, using $ 325,000 of equity to purchase 191 BTC. As one commenter put it: “Firstly, let me wish you good luck. Second, let me tell you how much of an idiot you are.” As bitcoin kisses the symbolic $ 10k threshold, a new wave of intrepid souls has emerged, willing to lay it all on the line in the name of bitcoin. Will history prove them to be shrewd or stupid? That all depends on which analyst you consult.
Heavy Hitters Spar with Bitcoin
By whatever metric you choose to measure it, bitcoin has gone parabolic. Half a million newcomers are believed to be entering the market every day, and the bitcoin bounce is blessing everything from BTC domain names to cryptocurrency-related stocks.
Former hedge fund manager and major bitcoin investor Mike Novogratz has said he sees bitcoin multiplying four-fold by the end of 2018. But he’s also hedged his bets by saying there could be a 50% correction. The former Fortress hedge fund manager appeared on CNBC on Monday where he said:
Bitcoin could be at $ 40,000 at the end of 2018. It easily could.
Novogratz also predicted Ethereum tripling in value within the same period. Thomas Gluckman, head of marketing at Hong Kong’s Gatecoin exchange, also believes there’s still ample scope for growth. When quizzed about bitcoin on Bloomberg, Gluckman said:
I would still argue that it is highly, highly undervalued. If you look at the long-term potential of the technology in the next 10, 20, 30 years, $ 10,000 is cheap in my opinion.
Don’t Mention the B-Word
Within the past 24 hours, the term “bitcoin bubble” has peaked on Google Trends, though given the glut of analysts and investors who’ve been uttering the B-word of late, that’s no surprise. On CNBC on Monday, Citadel’s Ken Griffin invoked the old tulip mania canard, before adding:
Is it a fraud? No. But these bubbles tend to end in tears. And I worry about how this bubble might end.
If there are three things bitcoin’s original believers resent their digital currency being likened to, it’s a bubble, the return of tulip mania, or a reprise of the dot-com crash. Each of these analogies has been discredited at length, but that doesn’t stop them from resurfacing every time bitcoin pulls another bitcoin and rockets higher still.
We’re Gonna Need a Bigger Moon
A BNP Paribas spokesperson noted that whatever happens with bitcoin, they don’t see the trend breaking down anytime soon:
We are seeing a shift of resources now. Is this a misallocation or seeds of a really worthwhile shift? Time will tell. We suspect cryptocurrencies are here to stay.
Another analyst, Peter Tchir in Forbes confessed to “having some real trepidation at these levels”, before opining that “it has gone too far, too fast”.
As bitcoin has risen over the past few weeks, going from meteoric to parabolic, many fear the next stage could be catastrophic. A 50% retracement would still leave the majority of this year’s buyers sitting pretty at $ 5,000 a coin. In fact as one analyst pointed out, bitcoin could lose 85% of its value overnight and still be up 40% for the year. But for the late arrivals to the party, a serious crash would be hard to countenance.
“Bitcoin is Starting to Worry People in the Federal Reserve”
“Bitcoin has gone parabolic,” conceded Art Cashin on CNBC, before adding “that usually doesn’t end well.” Cashin continued:
“I think we’re in the fear-of-missing-out phase now…I am told – and take this with a huge grain of salt – that the movement is even beginning to worry some people in the Federal Reserve.”
Such has been the rate of bitcoin’s inexorable rise, analysts have been struggling to find a similar case for comparison. The most oft-cited stat seems to be the Dow Jones industrial average which climbed 82% in 1915, its biggest year. Bitcoin has outperformed that by 10x this year and it hasn’t even broken a sweat.
Everything seems like a bubble after the fact. But right now, we could just be getting started. That guy on Reddit who took out $ 325k equity on his house to buy bitcoin? His investment is now worth $ 1.9 million. The only way to find out whether this rocket is filled with paper straws or moon fuel is to keep going. One thing’s for sure: up this high in the atmosphere, things start to get scary. It’s a long way down.
Do you think bitcoin’s still got room to grow or are we due for a correction? Let us know in the comments section below.
Images courtesy of Shutterstock and Pixabay.
The post As Bitcoin Goes Parabolic, Analysts Voice Their Concerns appeared first on Bitcoin News.
The world is going crazy for bitcoin. You’ve probably noticed. There’s no need to broach the topic with coworkers, friends, and family anymore: they’re the ones approaching you with questions. If investors in the west are intrigued by bitcoin, South Korea and Japan have succumbed to full-blown mania. But which country will be next to go crazy for crypto?
Hooked on the Blockchain
Bitcoin is a seductive beast. First it flummoxes you. Then it beckons to you. Then it extends its digital embrace and pulls you in. Before you know it, you’re seeking answers on subreddits to the best computer paper for printing private keys and are conversant in esoteric cacography-based memes (yes, HODL).
Once you go bitcoin, you never go back.
Two countries that have welcomed this new world order are South Korea and Japan. The Japanese are buying – as well as actually spending – bitcoin and the South Koreans are trading it. Around 70% of the world’s bitcoin trading takes place in yen or won. The neighboring nations are leading the pack, but other countries are starting to stir. And while many nations have gotten the hots for bitcoin, the following four look likeliest to develop crypto mania next.
For identifying emerging markets, Google Trends is your friend. Its data should not be read as absolute, but it indicates pockets of interest around the globe. For the term “pay with bitcoin”, South Africa proves to be an extremely large pocket whose populace are intrigued by all things crypto. It also ranks fourth globally for “buy bitcoin” within the last 90 days.
Two of the countries that rank above SA on that list also hail from Africa – Nigeria and Ghana. Many of the world’s unbanked reside in these countries, and many more Africans in lands such as Zimbabwe are reliant on money remittance from family overseas. Bitcoin is ideal.
For bitcoin to flourish in any country it needs two things: public interest and a favorable regulatory environment. South Africa passes both tests with flying colors. Its government has spoken of taking a “balanced approach” to cryptocurrency regulation, and its second largest supermarket chain is currently trialing bitcoin payments.
Australia’s already caught the bitcoin bug, but there are signs that it could develop into a fever as virulent as that sweeping its Japanese counterpart to the north. Australia ranks second for “buy bitcoin” and “pay with bitcoin” on Google Trends in the last 90 days. One Australian utilities firm is processing US $ 750,000 of bill payments a week in cryptocurrency. That’s just the tip of the iceberg though, and if Australia goes Full Bitcoin – its Reserve Bank sees the potential in blockchain technology – the AUD could soon start creeping onto the fiat/bitcoin volume chart.
Slovenia – home to the cryptocurrency powerhouse that is Bitstamp – could just as easily have made this list. Instead, that spot goes its European cousin, Estonia. The tech-loving land, which bills itself a New Digital Nation, has its own e-Residency passport for “global citizens”. It’s also embracing blockchain technology and has floated plans for its own national cryptocurrency.
For all its progressiveness, the Northern European country has issued mixed messages regarding the status of bitcoin exchanges. Still, the appetite for crypto is strong in Estonia, which has spawned an impressive number of fintech startups in the token economy this year. If its government was to formally welcome bitcoin, Estonia would be primely positioned to become a market leader in fintech, blockchain, and digital ledger solutions.
Venezuela is the dark horse for cryptocurrency adoption. You won’t see it topping any Google Trends lists, but the appetite for an alternative payment and savings mechanism is there alright. While the country hasn’t tried to ban bitcoin, its police have clamped down hard on anyone caught mining cryptocurrency. It’s not so much the mining that’s the issue as the energy theft that often occurs. Then again, in a country that’s endured 700% inflation this year – a figure that’s tipped to top 2,300% next year – who can blame 100,000 Venezuelans for trying to mine their own money.
Unfortunately, for bitcoin to get bigger in Venezuela, living standards may need to drop further, forcing its impoverished people to take action. If a full-blown revolution were to topple the country’s weakened government, anything’s possible – yes, even a state whose new national currency is bitcoin.
There are other states that could have made this list including Singapore and any number of African nations. Everywhere you look in the world – developed nations and developing ones; stable countries and unstable ones – interest in bitcoin is piquing. Just as the global balance of power ebbs and flows between nations, so it is with cryptocurrency adoption. Japan and South Korea are leading the charge, but that is likely to change.
Which country do you think will be next to embrace bitcoin? Let us know in the comments section below.
Images courtesy of Shutterstock, Unsplash and Cryptocompare.
Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com.
The post After Japan and South Korea – These Countries Are Primed For Bitcoin Mania appeared first on Bitcoin News.
The resignation of Robert Mugabe from President of Zimbabwe after four decades appears to have spurred its citizens even further into the waiting digital arms of the world’s most popular cryptocurrency, bitcoin, and to a new global high of $ 17,875. After years of theory and debate, the decentralized currency has its real-time case study as a refuge for those seeking to store their wealth in a medium that will hold its value or better.
Zimbabwe as a Bitcoin Case Study
A local analyst noticed it “looks like people [of Zimbabwe] trust bitcoin more than anything else to maintain the value of their money. That is what’s propelling the price.” Almost immediately after the new President was sworn-in, Golix, a local exchange in Harare, showed bitcoin collecting a near twenty percent premium, lifting it to almost a clean ten thousand dollars above then-traded prices outside of the country.
The struggling nation is beset by inflationary problems the likes of which haven’t been seen since the Weimar Republic’s Reichmark days of the early 20th century.
As at least part of the reason why the Mugabe regime fell, former Minister of Finance, Ignatius Chombo was promptly arrested and charged with corruption and abuse of power. As of this writing, his bail is being reported as denied. International press outlets also report Mr. Chombo owns one hundred properties throughout the country, though he has spent the better part of the last 20 years in various low-level government agencies.
The new President, Emmerson Mnangagwa, appointed previous Minister of Cyber Security, Patrick Chinamasa, to act as Minister of Finance until a cabinet is in place.
Crypto is a Safe Haven from Fiat
Although its citizenry is smartly moving away from disastrous government-issued money, that hasn’t stopped the same state agents from issuing baffling decrees. As reported in these pages, the country’s Reserve Bank director announced recently, “In terms of the bitcoin, as far as we are concerned, it is not actually legal … and until we have actually established and come up with a legal and regulatory framework for them, it will not be allowed.”
A key aspect of cryptocurrencies is their permissionlessness. Bitcoin does not care whether it is allowed or not.
“For Zimbabweans,” Reuters reports. “the cryptocurrency seems to offer rare protection from fears of a return to hyperinflation and financial implosion. On the streets of Harare, black market rates for U.S. dollars continued to ease. It cost $ 140 using electronic bank transfer or ‘Zollars’ to buy $ 100,” down ten dollars from just a few days ago. “In the grip of acute shortages of U.S. dollars, Zimbabweans are piling into anything they think might retain value.”
What do you think of Zimbabwe pushing bitcoin’s price? Tell us in the comments below!
Images courtesy of: Pixabay.
The Nigerian Deposit Insurance Corporation (NDIC) has warned Nigerians that they will not be afforded consumer protections when trading virtual currencies. NDIC representatives also reaffirmed that the Nigeria’s monetary regulators are unable to exert influence over the cryptocurrency markets.
The Nigerian Deposit Insurance Corporation Warns Against Cryptocurrencies
Mohammed Umar, the director of research, policy and international relations at the NDIC, has outlined the risks it perceives are associated with trading cryptocurrencies, in addition to emphasizing that regulators do not provide insurance covering the risks associated with trading virtual currencies not issued by the Central Bank of Nigeria (CBN).
Speaking at an annual workshop for finance correspondents on “financial disruption of digital currency and it’s consequences on the banking and deposit insurance system,” Mr. Umar struck a firm tone, stating “The financial regulatory authorities are not playing catch up on the digital currency race in Nigeria. There is no country in the world that allows its citizens to use digital currencies as money not issued by the central bank. No central bank will accept digital currency as a substitute for its national currency or part of its monetary system, when it is not able to control it. Nigerians must understand that adequate notice has been issued by all financial sector regulatory authorities, namely Central Bank of Nigeria, CBN and Nigerian Deposit Insurance Corporation, NDIC, to warn Nigerians who want to trade in bitcoins as gamblers.”
Mr. Umar also stated that an inter-agency committee including representatives from the NDIC, Ministry of Justice, Nigeria Police, Department State Security, Economic and Financial Crimes Commission, and other state institutions, has been established to monitor and ”sanitize the system.” Mr. Umar concluded by stating “If you can buy a bitcoin, nobody will stop you. It is at your own risk. A bitcoin is not covered by the CBN rules, and NDIC will not insure it. We have consistently warned Nigerians that anyone who trades in bitcoin does so at his own risk.”
“Digital currency is for gamblers” – NDIC Chief, Dr. Sabo Katata
Speaking at the workshop, the Deputy Director of Research, Policy and International Relations (RPIR) of the NDIC, Dr. Sabo Katata, likened cryptocurrency trading to gambling. Dr. Katata stated “Digital currency is for gamblers. If you want to invest in bitcoins you can go ahead, for that is what you are. If you want to buy bitcoins you can, but your are doing so at your own risk. The regulators will not come and protect you.”
Dr. Katata presented a paper entitled “Financial Disruption of Digital Currency and it’s Consequences on the Banking System and Deposit Insurance System” during the event, emphasizing many of the risks associated with the virtual currency markets. His colleague, the Director of the RPIR, Mr. Mohammed Umar Yayangida, also spoke at the event, stressing the lack of power that the NDIC and the Central Bank of Nigeria have with regards to exercising control over cryptocurrencies.
Mr’s Yayangida’s remarks echo those made earlier this year by the Deputy Director of the Central Bank of Nigeria’s Banking and Payments System, Mr. Musa Itopa-Jimoh. Speaking at a breakfast meeting organized by the Chartered Institute of Bankers in Nigeria, Mr. Musa Itopa-Jimoh emphasized the limited influence that the Central Bank of Nigeria can exert over the cryptocurrency markets, stating “Central bank cannot control or regulate bitcoin. Central bank cannot control or regulate blockchain. Just the same way no one is going to control or regulate the Internet. We don’t own it.”
What is your response to the statements made by the NDIC? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Wikipedia
Want to create your own secure cold storage paper wallet? Check our tools section.
The post Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections appeared first on Bitcoin News.